Posts Tagged ‘RealtyTrac’

Homebuyers Save Big with Down Payment Assistance Programs

June 13th, 2016 Comments off

apartment quest credit   apart for rentAccording to a joint report from RealtyTrac and Down Payment Resource, nationalmortgagenews tells MHProNews down payment assistance programs can save homebuyers on average $5,965 on the down payment and $11,801 over the course of a loan’s life, totaling $17,766.

Having studied 513 counties across the nation, the report states the money saved represents 41 percent of a year’s wages when compared to buyers that do not use the assistance.

The amount of assistance provided from down payment assistance programs across the country averaged $12,434, nearly double the average three percent down on a median-price home, nationwide.

In 18 percent of counties in the New York City, Washington, D. C., Salt Lake City and Baltimore metropolitan areas, down payment assistance was less than the three percent.

In Kauai County, Hawaii, homebuyers can save $80,148 over the life of a loan when compared with not participating in a down payment assistance program, representing the largest savings possible.

The Los Angeles, San Francisco, Miami, New Orleans and Seattle metropolitan areas also offer savings of over $50,000 for the life of a loan for participating in a down payment assistance program. ##

(Photo credit:housequest)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J Silver to Daily Busines News-MHProNews.

As with Land Lease Communities, Institutional Investors are Replacing Mom & Pop Operations in Home Rentals

August 25th, 2015 Comments off

Homes-For-Rent sign  creditAccording to the U. S. Census Bureau, home ownership fell to 63.4 percent in Q2, the lowest rate since 1967. Concurrently, renter-occupied units rose by two million from the previous year.

MHProNews has been informed by bloomberg that BlackRock Inc., the world’s largest money manager, is jumping in to the rental market fray by financing investors who buy single-family homes through a network of partners. It will also fund renovations of homes that will then be rented.

The rental market has mushroomed due to the lingering effects of the real estate collapse that make it difficult for many Americans to buy a home. RealtyTrac reports since 2007, investors who have purchased 10 or more homes a year have spent $110 billion to acquire 620,000 properties, a significant chunk of the 14 million rental homes across the country in only eight years.

Cerberus Capital Management, Blackstone Group LP and Colonial Capital have been financing smaller landlords and bundling the loans into bonds.

The market could certainly bear to have more entrants,” said Ryan McBride, chief operating officer at Colony American Finance LLC, an affiliate of Colony Capital. “This is a largely untapped opportunity in a huge potential market.

With interest rates on the loans ranging from 5.25 to 6.5 percent, Alex Sifakis of JWB Real Estate Capital in Jacksonville, Florida has borrowed $13 million to finance some of his 430 rental homes, and said he will need $30 million more a eyar to acquire more rental units. “More competition drives rates down,” Sifakis said. “The more people that are in market, the more I can leverage them against each other.

Similar to ownership of manufactured home communities, mom-and-pop landlords have long dominated the rental home industry. But by accessing public markets, bank-arranged credit lines and bonds to finance purchases, institutional landlords have spent $25 billion just since 2012 buying single-family homes to rent.

In 2014 Blackstone and private equity firm KKR & Co. acquired a majority stake in Home Partners of America, Inc. The company allows tenants to select a home they would like to buy, lets them live in it for up to five years as a rental with the option to buy. Blackstone’s Invitation Home keeps the homes for the long term with the option to sell them in bulk or one at a time. ##

(Photo credit: homes-for-rent)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Drop in Down Payment Signals Uptick in First-time Home Buyers

June 5th, 2015 Comments off

apartment quest credit   apart for rentFalling to the lowest level since Q1 2012, the average down-payment for single-family homes, condos and townhouses purchased in the first quarter dropped to 14.8 percent of the purchase price, a slight decrease from 15.2 percent the previous quarter and 15.5 percent a year ago, according to what RealtyTrac tells MHProNews.

Down-payment trends in the first quarter indicate that first-time homebuyers are finally starting to come out of the woodwork, albeit it gradually,” says Daren Blomqist, vp at RealtyTrac.

The lower insurance premiums for FHA loans that took effect at the end of January and new low down-payment loan terms from Fannie Mae and Freddie Mac are contributing to the uptick. Typically, new homebuyers cannot afford the required down-payment when shopping for homes, keeping them in the rental market.

In addition, njrereport says down payments of three percent or lower comprised 27 percent of all purchase loans in Q1 2015, up from 26 percent in the last quarter of 2014. As translated into dollars, the average down payment in the first quarter was $57,710, up slightly from $57,618 in the previous quarter but down from $57,992 Q1 2014. ##

(Photo credit: housequest-first time homebuyers)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

All-cash Home Sales Fall Nationally, Save Several Metros

August 19th, 2014 Comments off

pending sale  paul sakuma  AP Photo creditAccording to RealtyTrac, all-cash deals comprised 38 percent of all home sales in the second quarter of 2014, a drop from 42 percent in Q1 2014, as institutional buyers—those buying at least ten homes annually—are finding good deals drying up. They accounted for 4.7 percent of all home sales, a drop from six percent in 2013, as CNNMoney reports. The good news is that as institutional buyers leave the market, there is more room for first-time homebuyers. But with home prices up over 20 percent from 2012 historic lows, the bad news is first-timers may already be priced out of the market. MHProNews has learned over 50 percent of all home sales in Las Vegas are for cash, and the percentage is only slightly lower in Detroit, Kansas City, Philadelphia, Cleveland and New York. In the Miami metro area cash sales comprised 64 percent of all home sales. ##

(Photo credit: Paul Sakuma/Associated Press)

Foreclosure Filings Edge Up in July

August 19th, 2014 Comments off

foreclosure___for_sale__merchant_circle_creditForeclosure filings, which include default notices, scheduled auctions and bank repossessions increased two percent from June to July, but dropped 16 percent from a year ago, reports “July was the 46th consecutive month where U.S. foreclosure activity was down on a year-over-year basis,” said Daren Blomquist, vice president at RealtyTrac. “After nearly four years of falling foreclosures, we are starting to see evidence that foreclosure numbers are normalizing at the national level. The 16 percent decrease in July was exactly half the annual decrease we saw a year ago in July 2013, when U.S. foreclosure activity was down 32 percent on a year-over-year basis.”

A total of 49,624 U.S. properties began the foreclosure process for the first time in July, a five percent increase from the previous month, but still down 18 percent from a year ago, as MHProNews has been informed. Meanwhile, 51,595 properties nationwide were set for foreclosure auction in July, an increase of ten percent over June but a drop of three percent from a year ago. Additionally, 25,937 U. S. properties were repossessed by lenders via foreclosure in July, a drop of four percent from the prior month and down 30 percent from a year ago to the lowest level since April 2007. ##

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Cash Sales for Homes Increase 19 Percent

May 8th, 2014 Comments off

RealtyTrac reports for the first three months of 2014, 43 percent of all home sales were cash deals, up 19 percent from a year ago, and the highest level since the analysis company began tracking cash sales in early 2011. Cash buyers are more attractive to sellers due to quicker turn around time than going the finance route. “Inventory shortages, as well as lending regulations favor the all-cash buyer,” said Chris Pollinger of First Team Real Estate in Southern California. In spite of a downturn in purchases by institutional investors, reports, there are individual investors and second-home buyers taking up the slack. Miami, New York, Boston and coastal California are attracting a phalanx of foreign buyers who are paying cash. As MHProNews knows, buyers paid on average $207,668 for homes in Q1 2014, 13 percent below the properties’ average estimated value. ##

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More Underwater Property Owners Breathing Air

April 18th, 2014 Comments off

In the first quarter of 2014 9.1 million U. S. residential properties representing 17 percent of all properties with mortgages were seriously underwater—defined as the loan amount 25 percent higher than the market value–down from 26 percent one year ago, and a drop from 9.3 million residential mortgages representing 19 percent of all properties with mortgages n Q4 2013. As reports on the data compiled by RealtyTrac, two years ago 12.8 million properties with mortgages represented 29 percent of all residential mortgaged properties, as has learned. “U.S. homeowners are continuing to recover equity lost during the Great Recession, but the pace of that recovering equity slowed in the first quarter, corresponding to slowing home price appreciation,” said Daren Blomquist, vice president at RealtyTrac. “Slower price appreciation means the 9 million homeowners seriously underwater could still have a long road back to positive equity.”

“The relatively high percentage of foreclosures with equity is surprising to many because it would seem homeowners with equity could easily avoid foreclosure by leveraging that equity by refinancing or with an equity sale of the home,” Blomquist noted. “But many distressed homeowners with equity may not realize they have equity and in some cases have vacated the property already, assuming that foreclosure is inevitable.”##

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Underwater Mortgages Gradually Decrease

January 9th, 2014 Comments off

Increasingly, more mortgage borrowers are rising to the water’s surface instead of being underwater. According to RealtyTrac, 19 percent of all homes with mortgages were “deeply underwater,” meaning they owed at least 25 percent more on their mortgages than their homes are worth in December, a total of 9.3 million properties. That’s a drop from the 10.9 million properties in the same position last January, accounting for 26 percent of all homes with mortgages. The increase of nearly 14 percent in home prices year-over-year through October has added thousands of dollars to the average value of a U. S. Home, as CNNMoney informs MHProNews. However, Daren Blomquist of RealtyTrac says the danger still has not ended for many people. “There are still millions of homeowners who are in such a deep hole that it will take years for them to regain their equity. The longer these homeowners remain in a negative equity position, the more likely that foreclosure will become the path of least resistance for them,” he noted. The states with the highest percentages of “deeply underwater” homes include Nevada (38%), Florida (34%), Illinois (32%) and Michigan (31%).

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Foreclosures no Longer the Hot Ticket to Income

January 2nd, 2014 Comments off

Would-be investors buying foreclosed homes at auction and renting them are finding the trough is drying up, as auction prices have risen faster than rents, according to Core Logic, resulting in returns on investment (ROI) dropping. “It’s gotten so competitive that discounts at foreclosure are not where they were,” said Daren Blomquist, spokesman for RealtyTrac. “It’s harder for third party purchasers at auction to make a profit.” ROI fell in eight of the top ten best buy-and-rent cities, including Tampa, which was the top city in 2012, and the same for Chicago in 2013. According to, of the top ten only Houston and Charlotte, NC gained in average returns. Nationally, MHProNews has learned, homes sold in foreclosure auctions now only cost four percent less than average sales, compared to the 16 percent differential in 2012. Additionally, while home prices increased almost 14 percent through October, 2013, rents for the first nine months rose only 2.2 percent, compared to the same period of 2012.

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Median Residential Sales Price Holds Steady

November 26th, 2013 Comments off

The latest news from the RealtyTrac Residential Sales Report indicates the national median sales price of all residential properties, including distressed and non-distressed, remained at $170,000, the same as Sept., but six percent higher than a year ago Oct. Additionally, HousingWire says this marks the 18th consecutive month of median sales price increase on an annualized basis. The median price of a distressed property, either bank-owned or in foreclosure, hit $110,000 in Oct., 41 percent below the median price of $185,000 for a non-distressed property. MHProNews has learned rapidly rising home prices is shifting disposition of distressed properties away from short sales and back toward bank-owned and auction sales that are more favorable to lenders. Short sales made up 5.3 percent of all residential sales in Oct., down from 6.3 percent in Sept., and an 11.2 percent decrease from Oct. 2012.

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